Israeli Sheep and Goat Farmers to Receive State Subsidies for Tariff Removal

Israel's Ministries of Finance and Agriculture have reached an agreement with sheep and goat farmers to reform the dairy sector. Under the new plan, import tariffs on goat and sheep milk and dairy products will be abolished. In exchange, farmers will receive direct state subsidies of 1 shekel per liter of milk, with the total annual cost estimated at 24 million shekels. The agreement, reported by Calcalist, is expected to be signed soon.

The removal of the 8.5 shekel per kilogram import tariff is intended to lower import costs and increase volumes. The direct farmer support aims to reduce milk procurement prices by 25%. The reform includes a four-year transition period. Farmers unable to adapt or wishing to exit the industry will be eligible for full support of 3.6 shekels per liter, allowing them to leave the business.

The sector comprises approximately 46 sheep farms producing 9.8 million liters of raw sheep milk annually at an average price of 4.8 shekels per liter, and 68 goat farms producing 12 million liters of raw goat milk at an average price of about 5.15 shekels per liter. Most of these small-scale livestock farms are located in peripheral areas.

Previously, the sheep and goat farming sector operated under an agreement structured for dairy cattle. That agreement expired in December, and a new one has yet to be signed.